st3v3

I thought I'd saw the highest APR in town the other day of 33% but I've just seen on TV an APR of 2356% on some quidloan advert, I'm almost shocked lol.

The unfortunate thing is that some people will actualy phon them
up.
Short term or not that's a bit outragiouse

rabmc

just seen that, god you would have to be major desperate to do that eh

surely thats loan shark material

utternutter

but its over a very short period hence the figures look stoopid

Iain Mac

Personally, I don't think rates like that should be allowed but, the actual interest charge will be relatively small because the loan will be for a small amount of money over a short period of time, and the lender has to consider risk and reward when setting his rates.

Many of the folk that will take up those kind of loans won't repay on time (or at all), and if it's a £50 loan that is written off and the entire interst charge is (say) £10, you need to write 5 good loans just to cover the loss on one bad one.

Chip

iTrader: (3)

Short term low value rates always look horrific.

Even if they only cost you a tenner in fees its easy to run into hundreds of percent.

KSA-Cossie

iTrader: (4)

Shocking.

StephenC

saw that too, payday loans I think it was, start of a slippery slope using them bandits

Saaamon

iTrader: (2)

Spot on!

Psycho Warren

iTrader: (5)

your a mug if you use payday loan companies.

dangerousbrian

i saw one advertised where you could text for a loan of £100. the deal was that you had to repay them £110 within 7 days..if the terms were not met then the apr came at 995%..